Savina O.N., Savina E.O. Current Issues of Improving the Legal and Regulatory Framework to Encourage Investment in the Russian Federation

Abstract: The authors of the article analyse the existing mechanisms to improve the efficiency of investment projects based on the case study of value-added tax and corporate profit tax. The research covers such taxes as value-added tax (sales tax) and corporate profit tax as well as the impact of depreciation on investment promotion. Attention is also given to specific measures to improve investment opportunities of enterprises. The authors also describe specific legislative measures to stimulate the investment attractiveness of enterprises and their development. In their research the authors have used traditional research methods of analysis and synthesis as well as chronological analysis. The authors carry out the chronological study of the modification of tax legislation and offer innovations to be undertaken in the sphere of tax legislation in order to increase investment activity of entrepreneurs. The authors have shared their point of view regarding the introduction of sales tax, lower VAT rates and distribution of tax according to the levels of the budget system as well as changes in depreciation policies of enterprises and loss recognition procedures. They have also made suggestions on how to boost financial autonomy in Russian regions, etc. The authors believe that the improvement of the tax mechanism will cause a limited impact if we do not link tax reforms to budget policy. Thus, the authors of the article propose particular steps to increase investment activity by improving the regulatory and legal framework. According to the authors, these measures will provide an opportunity to raise additional revenues into the Russian Federation budget. 

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